With recent technological advancements in the financial industry, banks through the entire United States (and the rest of the world) continue to search for tools to optimize traditionally manual processes. With administrative costs comprising this kind of large portion of a bank’s annual expenses, banking software systems that offer effective automation will continue to have solid growth for decades to come. An important trend among banks is the automation of loan files. As any banker knows, just one file can represent mountains of paperwork and possibly years of work. This short article requires a consider the ways banks are using bank imaging technology to streamline the management of loan and credit files.
Questions For Consideration
Before considering your alternatives for loan file automation, it’s wise to first review some basic questions about your bank’s current situation. By thinking critically about your bank workflow as it stands today, your financial institution can maximize return on investment. The following questions might be helpful when starting the process of optimization.Sim Card Cloning Tool
- How efficient / effective is your present paper loan file system?
- The amount of money does your financial institution spend every year creating and organizing physical files?
- How frequently do physical files need to be transferred in one branch to some other?
- Items to consider: courier costs – routing for credit analysis, approval officer review, etc
- Has your bank every misplaced, damaged, or completely lost a loan file, creating mountains of duplicate administrative work to replace the original files?
- Have customers or lending officers ever complained about the period of time it takes to approve or update loan files at your bank?
Loan Approval Process: A Very Good Destination for a Start
Once you’ve identified the requirement to automate your loan process, a smart place to begin are at the very start of the application process. By implementing a banking software system that will manage your from start to finish, your organization will yield the greatest ROI from this kind of platform. When evaluating the offerings from different banking software companies, it’s a good idea to locate a system which will integrate with your existing applications, underwriting software, credit analysis platform, and documentation. It can be important to locate a system which will provide around the moment loan status information, electronic routing, and multi-party document viewing rights. Through automated updates to the assigned user, loan status, and approval status, your bank will experience formerly unrealized economies of scale.
Optimizing Your Bank’s Loan Pipeline
With the volume of loans being processed daily within a bank branch, maintaining the status of each paper loan file has historically been difficult for institutions of most sizes. When implementing bank loan software to centralize such activity, it is a must your bank select a that gives a loan pipeline management and reporting tool. Such tools typically give you a customizable dashboard for instant analysis of a bank’s existing loan pipeline. In addition, such platforms should supply a wide selection of reporting options, allowing users to sign up for email alerts for specified pipeline activity. Also, reports should have the capacity to be easily exported to the typical formats, such as.pdf and.csv, allowing deeper analysis by management.
Customize Loan Files for Your Bank Workflow Needs
Perhaps the greatest good thing about automating loan files via bank management software, is the capacity to quickly glance at the entire documentation workflow and instantly understand which documents continue to be missing. As documents are routed from user to user throughout your bank workflow, users could be automatically notified via email that their action is required. Whenever choosing a banking document management system to streamline your loan filing, it is essential that you go with a vendor that enables you place up unlimited workflow actions in your system. By customizing every workflow action to your bank’s needs, you are able to ensure your system will reflect the operational goals of your institution. Such elements to take into account in your workflow automation include: managing exceptions, defining user groups, email notification recipients, setting lending limits, etc.
Closing Thoughts – Loan File Digitization
By automating the approval and life cycle of a loan file, your bank can reap significant benefits. Studies have shown that many have the ability to recoup their investment in loan portfolio management software inside a twelve to eighteen period. By digitally capturing every action of a loan file, banks have now been known to save money in the areas of administrative costs, courier / overnight shipping expenses, space for storing, and overall productivity.